Ukraine lowers debt servicing cost 0.5 pp in year - Finance Ministry

MOSCOW. March 6 (Interfax) - The weighted average interest rate on Ukraine's government debt fell to 4.51% per annum as of January 31, 2026, from 4.55% in December 2025 and 5.0% in January 2025, Ukrainian media reported, quoting the Finance Ministry's website.

"In annual terms, the debt portfolio has become cheaper with longer maturities, which lowers the cost of servicing it and reduces refinancing risks in the medium term," the ministry said.

The weighted average maturity increased to 13.29 years, from 11.6 years in January 2025.

Overall public debt at the end of January 2026 stood at $215.0 billion, or UAH 9.213 trillion, compared to $169.0 billion, or UAH 7.068 trillion, a year earlier. Thus, over the year, debt in foreign currency increased by 27.2%, and in hryvnia it rose 30.3%.

The ministry said the restructuring of GDP warrants was successfully completed at the end of 2025: on December 24, backed by 99.06% of investor votes, GDP warrants were exchanged for new Eurobonds and cancelled in their entirety, enhancing fiscal predictability and debt sustainability, and eliminating the risk of having to make around $20 billion in payments in 2025-2041.

In addition, a medium-term public debt management strategy for 2026-2028 was approved in 2025. The strategy has three main goals: increasing the share of grants and other non-debt financing to ensure state budget financing; reducing debt risks by lowering the cost of debt, extending the maturity of debt obligations and optimizing their structure; and maintaining relations with investors and stimulating domestic government bond market development as a tool for economic recovery.